Olivut Resources Ltd. Exploration Update - Seite 2

Additional sample material has recently been sent to Saskatchewan Research Council for heavy mineral analysis.  The Seahorse Project area underwent periods of extreme warming and laterization that destroyed silicate indicator minerals as evidenced from regional till sampling results.  However, some opaque oxide indicator minerals and diamonds survive this type of weathering.  Given the anomalous drill hole geochemical results, this work constitutes the obvious next cost effective step.

In addition to the drilling program described above, limited regional prospecting was conducted.  A large gossan zone was identified on the property that appears to have a strike length of approximately eight kilometres.  Very limited sampling was conducted due to budget and fuel constraints.  Some of these samples returned trace amounts of gold which may be significant given the limited number of samples collected.  The linear gossan zone occurs within the dolomite country rock and likely represents a sulphide bearing fault zone. 

While analyses have been ongoing, a great deal of time has been spent further reviewing the geophysical and geological information considering these new anomalous results.  This region has been subjected to no known previous detailed exploration work.   

The Company considers the Seahorse Project to have the potential to host diamondiferous kimberlite bodies of significant size and perhaps other mineral deposits, based on a combination of: 2019 program results as described above; favourable diamond stability indicator minerals found regionally and locally, including 18 macro diamonds found in regional samples to the west and northwest; specific geophysical targets; regional and local faults that would favour kimberlite emplacement; occurrence of diamondiferous kimberlites to the north and southeast, as well as other geochemical data in the area.

Due to its remoteness, the project area must be supplied by small aircraft and helicopter.  Olivut is the Operator pursuant to the terms of the previously announced option agreement with Talmora Diamond Inc. (“Talmora”) to earn 50%. On December 7, 2019 Olivut informed Talmora that $1,295,256 had been spent on the Seahorse Project to October 31, 2019.  Olivut must decide whether to exercise its option by July 6, 2020. The Company will report further details once they are available.